INTRODUCTION

This session will deal with two contractual areas frequently encountered when administrating a
contract and which if not properly dealt with might result in a great lost to the Contractor in
terms of both money and time (which incidentally also translates back to money).These areas are
the provisions of the Contract, which deal with: -
a) Extension of time b) Loss & Expense (as often referred to by us)The best kept secret about
these Clauses are that they are provided to provide assistance to client and their removal will
actually result in great difficulty to the Client (sometimes the removal of these Clause would trap
the client in a very uncomfortable position, contractually). Therefore if ever the client implies
that the extension of time or loss and expense are for the contractors advantage, he should be
reminded that the actual case is otherwise. However the importance of these Clauses to us, are
that they provide a contractual avenue to claim additional time and money without actually
resorting to litigation. The reason both these Clauses are being dealt together is because the claim
arising would normally lead to a claim in the other especially in the case of an extension of time
claim. Therefore let us proceed with the examination of the various different standard contract
forms and the provisions dealing with extension of time and loss andexpense.The examinations
of these Clauses are
to:a) identify the notification requirement b) set up Claim Action Plan and Proceduresc) set up Cl
aim Substantiationd) set up Record Keeping and Filinge) create Standard Correspondence and Fo
rm


FIDIC FORM OF CONTRACT CONDITIONS44.1 EXTENSION OF TIME FOR
COMPLETION
In the event of: -
a) the amount or nature of extra or additional work, or b) any cause of delay referred to in these
Conditions, or c) exceptionally adverse climatic Conditions, or d) any delay, impediment or prev
ention by the Employer, or e) other special circumstances, which may occur, other than through a
default of or breach of contract by the Contractor or for which he is responsible, being such as
fairly to entitle the Contractor to an extension of the Time for Completion of the Works, or any
Section or part thereof, the Engineer shall, after due'consultation with the Employer and the
Contractor, determine the amount of suchextension and shall notify the Contractor accordingly,
with a copy to the
Employer.44.2 CONTRACTOR TO PROVIDE NOTIFICATION & DETAILEDPARTICULAR
SProvided that the Engineer is not bound to make any determination unless theContractor has: -
a) within 28 days after such event has first arisen notified the Engineer with acopy to the
Employer,
and b) within 28 days, or such other reasonable time as may be agreed by theEngineer, after such
notification submitted to the Engineer detailed particularsof any extension of time to which he
may consider himself entitled in order that such submission may be investigated at the time

44.3 INTERIM DETERMINATION OF EXTENSIONProvided also that where an event has a
continuing effect such that it is not practicablefor the Contractor to submit detailed particulars
within the period of 28 days referredto in Sub-Clause 44.2(b), he shall nevertheless be entitled to
an extension of time provided that he has submitted to the Engineer interim particulars at
intervals of notmore than 28 days and final particulars within 28 days of the end of the
effectsresulting from the event. On receipt of such interim particulars, the Engineer shall,without
undue delay, make an interim determination of extension of time and, onreceipt of the final
particulars, the Engineer shall review all the circumstances andshall determine an overall
extension of time in regard to the event. In both such cases,the Engineer shall make his
determination after due consultation with the Employer and the Contractor and shall notify the
Contractor of the determination, with a copy tothe Employer. No final review shall result in a
decrease of any extension of timealready determined by the Engineer.

THE FIDIC FORM (FOURTH EDITION OF THE FIDIC FORM)Currently enjoying wide
usage among internationally financed project and other largecivil project and also is similar to
Civil Engineering Works Form used by JKR.The above Clause allows for extension of time to be
claimed for the reason stated.However, any other event arising due to reasons beyond the control
of the Contractor would also entitle him to an extension of time, the main reasons
area) extra or additional work arisen a result of a variationorder. b) change in quality, kind or cha
racter of any such work.c) inclement of weather.d) delay in providing information or instruction
by theclient/representative.e) unforeseen physical or artificial obstruction.f) delay in clarifying di
screpancies or ambiguities in the contract document.g) delay as a result of an Engineer's instructi
on which - couldnot have been reasonably foreseen at the time of
tender.h) change in construction method from that which would have been reasonablyused for
the said works as would have been contemplated at the time of
tender.i) delay from independent contractors or caused by additionalwork related to the said
contractors. j) delay from Nominated Subcontractor or Nominated Suppliers.k) delay due to the s
uspension of work.1) failure to give full and vacant, possession on time.m) act of God.n) force m
ajeure.o) strike. p) lockout or civil commotion.r) other reason beyond the control of Contractor.